Union Finance Minister Nirmala Sitharaman presented her fifth Union Budget and the Narendra Modi government's 11th budget on Monday. The budget is being deemed as a budget for the middle class. The FM announced providing a strong impetus to growth and job creation as one of the key focuses of the national budget. The other two were facilitating ample opportunities for citizens, especially the youth, and the strengthening of macroeconomic stability.
Here is around up from FM Nirmala Sitharaman's Budget 2023 Speech:
Income tax rebate limit has been increased from Rs 5 lakh to Rs 7 lakh under new tax regime. The fiscal deficit target for this fiscal will be 5.9 percent of GDP. Total gross market borrowing is estimated at Rs 15.43 lakh crore.
Agricultural Credit Target: Hiked from Rs 18 lakh crore to Rs 20 lakh crore
PM Awas Yojana: Outlay at Rs 79,000 crore. Up 66 percent.
Capital Investment Outlay: Increased by 33 percent to Rs 10 lakh crore which will be 3.3 percent of GDP. Effective Capex kept at Rs 13.7 lakh crore which will be 4.5 percent of GDP. Railway Outlay kept at Rs 2.40 lakh crore which is 9 times more than FY14. Ease Of Doing Biz Push: 39,000 compliances reduced. 3,000 legal provisions decriminalised. Infra: Govt to set-up 50 additional airports, heliports, and aerodromes. Artificial intelligence: 3 centre for excellence will be set up in top institutes Mapping co-ops: Govt to spend Rs 2,516 crore on the national co-operative database Energy transition investment: Outlay of Rs 35,000 crore.
She further said that the budget will enable inclusive farmer-centric solutions and help improve access to farm inputs, market intel, support for agri industry and start up. Earlier in February 2020, government introduced ‘New Tax Regime'. With this, individuals currently have the choice of paying tax under the new slab with lower rates but foregoing deductions or continue paying tax under the existing tax laws and claiming the applicable exemptions.
There are three categories of individual taxpayers: Individuals (below the age of 60 years) which include residents as well as non-residents, resident senior citizens (60 years and above but below 80 years of age) and resident super senior citizens (above 80 years of age).
New tax regime
Currently, 7 income slabs are available under the new tax regime. According to it, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh have to pay 5 percent tax. Income between Rs 5 and 7.5 lakh is taxed at 10 percent, while those between Rs 7.5 and 10 lakh at 15 percent.
Those earning between Rs 10 and 12.5 lakh have to pay tax at the rate of 20 percent, while those between Rs 12.5 and Rs 15 lakh have to pay at the rate of 25 percent. Income above Rs 15 lakh is taxed at 30 percent.
Here are some other key highlights from the Budget:
* Railways get Rs 2.4 lakh crore, which is the highest ever allocation to it
* Agricultural credit target increased to Rs 20 lakh crore
* Mobility Infra -- 50 additional airports, heliports
* 50 destinations to be selected through challenge mode for tourism
* Mahila Samman Savings Certificate will be made available for two years, deposits of up to Rs 2 lakh at 7.5 per cent interest
* Senior Citizens' Savings Scheme deposit limit raised to Rs 30 lakh from Rs 15 lakh
* Income tax rebate limit increased from Rs 5 lakh to Rs 7 lakh under new tax regime
* Allocation for PM Awas Yojna increased by 66 per cent to over Rs 79,000 crore
* Capital investment outlay to be raised by 33 per cent to Rs 10 lakh crore, which will be 3.3 per cent of GDP in fiscal 2024
* Effective capital expenditure of centre to be - Rs 13.7 lakh crore
* 157 new nursing colleges in major locations
* Mission to eliminate sickle cell anaemia by 2047
* Tribals to get Rs 15,000 crore over next three years for safe housing, sanitation, drinking water, and electricity .
* Manhole to machine-hole mode -- All cities and towns will be enabled for 100 per cent transition of sewers and septic tanks .
* Eklavya Model Residential Schools - 38,800 teachers will be hired
* Goal 'Make AI in India', 'Make AI Work For India' -- three centres for excellence for AI will be set up in top educational institutes
* Rs 2,516 crore for Computerisation of 63,000 credit societies
* 100 labs to develop apps using 5g services to be set up in engineering institutions
* Rs 35,000 crore for energy transition to net-zero emission goals
* Green Hydrogen Mission for reduced dependence on fossil fuel
* Battery energy storage systems of 4000 MWh will be supported
* 39,000 compliances reduced for ease of doing business,
* 30 Skill India international centres to be set up
* Natural Farming - one crore farmers will get assistance
(With inputs from agencies)
(Edited by : Jerome Anthony)
First Published: Feb 1, 2023 12:50 PM IST
